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Financial Stability Review SeptembeR 2011

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Tax credits, if combined with outreach and education efforts and other complementary incentives (such as net metering), can also help drive the market for renewables. Clearly, states cannot expect any one of these incentives by itself to remove all the barriers to renewable energy technology development. This study provides some potent examples of program design and implementation elements that have enhanced and limited program effectiveness. Although the unique socioeconomic, political, climatic, and infrastructure conditions at play within each state make a simple and uniform approach to incentive programs unworkable, states should consider the guiding principles below as they create.

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